Which of the Following Statements Is True About Responsibility Accounting

question 149

Multiple Choice

Which of the following statements is true about responsibility accounting statements?

• A) Responsibility accounting excludes controllable costs.
• B) Responsibility accounting segregates fixed costs and variable costs.
• C) Responsibility accounting excludes fixed costs and variable costs.
• D) Responsibility accounting segregates uncontrollable costs from controllable costs.

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Definitions:

Divisional Structure

An organizational arrangement where operations are grouped based on similar products or services, markets, or geographic locations.

Functional Structure

Functional Structure refers to an organizational form where the company is divided into departments each handling a specific function, like marketing or finance, concentrating expertise but potentially limiting inter-department communication.

Vertical Structure

An organizational structure where authority flows from the top down, with a clear line of command.

Customer Structure

The composition and organization of a business's clientele, including types of customers and their relationship to the business.